Company purchased a building

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A. The company issued a two-year, 12%, $770,000 note in exchange for a tract of land. The current market rate of interest is 12%.

B. Lambert acquired some office equipment with a fair value of $174,143 by issuing a one-year, $184,000 note. The stated interest on the note is 6%.

C. The company purchased a building by issuing a four-year installment note. The note is to be repaid in equal installments of $1 million per year beginning one year hence. The current market rate of interest is 12%. Record the initial transaction. Record interest expense at the end of the first year. 

Reference no: EM13918520

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